Risk How we mitigate Progress in FY21 RESILIENCE • Internal control and risk management • Significant progress made against our process in place to identify and strategic focus areas. Description manage risks (including emerging risks) • Purpose, ambitions and shared values Failure to withstand the impact of an that may impact the business. redefined and engaged throughout event or combination of events that • Conservative financial approach – the business (see page 3 for our new significantly disrupts all or a substantial strong balance sheet, relatively purpose). part of the Group’s sales or operations low levels of external debt, low risk • Five-year strategic plan created setting (e.g. pandemic). property portfolio, ‘value for money’ ambitious but realistic growth plans mentality. with renewed prioritisation and focus Link to strategy: • Strong and united Board and on both investment in growth activity All focus areas Management team in place, strong and further improving our systems and Performance indicator: managers in key roles and committed controls. Sales and profit colleagues. • Actions taken to mitigate the impact of Market share • Strong values – emphasising ’long- Covid-19 crisis while remaining focused Executive responsibility: term thinking’ and ‘acting like owners’ on looking forward and investing in Chief Executive Officer – which Board and senior management growth including : are required to role model, embedded – Maintaining strong financial Reports to: in the business through recruitment disciplines and operational grip with N/A and appraisal, and colleague clear prioritisation of investment Impact compared to FY20: communications. decisions and good cost control. • Strong relationships maintained – Enabling colleagues to work remotely with key stakeholders (shareholders, where possible and implementing colleagues, customers, suppliers, plans to close/re-open stores and community). facilities safely in accordance with • Family shareholding provides long- legal requirements. term stability. – Continuing to prioritise safety of • Investment in Dunelm brand and colleagues and customers, with diversity of routes to market provide further emphasis on promoting flexibility if one channel cannot communication with colleagues and operate. maintaining health and wellbeing. • Business continuity plans in place and – Continuing to work closely with kept up-to-date for sites, operations suppliers to implement alternative and technology. fulfilment routes. • Insurance cover in place to cover key – Increasing engagement with risks. colleagues, customers and suppliers. • Expert third-party advisers in place • Focus on value and affordability to (e.g. PR, corporate, banking, g, t respond to potential recession. to assist. DUNELM GROUP PLCANNUAL REPORT & ACCOUNTS 2021 81 STRATEGIC REPORT GOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION